Robert Has Been the CEO at Nikita Incorporated for the Last

question 25

Multiple Choice

Robert has been the CEO at Nikita Incorporated for the last seven years. For the last three years, he has illegally diverted cash and assets to himself and his family members. He has abused corporate perks, such as using a company jet to fly to the Bahamas for a vacation and allowed his family members to use the gym and other amenities at the corporate office for free. He has spent corporate funds on vacation home in Miami, Florida and a threw a lavish New Year's Eve party for a hundred friends. Which of the following governance mechanisms is illustrated in this scenario?

• A) Stock options
• B) Self-dealing
• C) The takeover constraint
• D) Employee incentives
• E) Greenmail

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Definitions:

Directly Proportional

A relationship between two variables where an increase in one results in a proportional increase in the other.

Inverse Ratio

A mathematical relationship between two variables where one variable increases as the other decreases, often represented as the reciprocal of a ratio.

Primary Labor Market

Primary Labor Market refers to sectors that offer high pay, benefits, and job security, contrasted with the secondary labor market.

Secondary Labor Market

A segment of the labor market characterized by low pay, unstable employment, and limited opportunities for advancement or benefits.